Visualize what investing $100 in early stocks would be worth today

Visualize what investing $100 in early stocks would be worth todayVisualize what investing $100 in early stocks would be worth todayTheres a lot of power in being first. And when it comes to Initial Public Offerings, or IPOs, it pays to be one of the earliest investors.But we wanted to understand how much it would pay, so we ran an experiment. Imagine you could go back in time and invest $100 into a handful of great companies when they first went public. What would your investments be worth today?Follow Ladders on FlipboardFollow Ladders magazines on Flipboard covering Happiness, Productivity, Job Satisfaction, Neuroscience, and moraOf all the companies we analyzed, Nike is the clear winner. An initial investment of $100 in 1980 would be worth over $6 million today.Walmart was a better bet than Amazon, topping the online retail giant by over $1 million in total investment growth.The same investment into Google (Alphabet) when it first went public would be worth only $2,632.Lets start with how we crunched the numbers. We wanted to compare apples to apples, so we made a couple key assumptions. First, we assumed our hypothetical investment of $100 at each IPO would stay with the underlying asset for the long term, but any dividends would be taken out as cash and leid reinvested. Then, we determined the present-day value of the investment through the ups and downs of stock splits, mergers and acquisitions. You can read more about our sources and methodologyhere. In short, you put $100 in at the IPO, and let it ride.The surprising conclusion of our visual is that tech stocks arent historically the best IPOs. Nike and Walmart fare much better than Apple and Google (Alphabet). Want another surprise? Buying $100 of Coca Cola would have been a much better investment than Starbucks. But regardless of how things turned out, the overall story in our visual is the enduring value of great American companies over several decades. Even GE, a company thats suffered its share of setbacks in the last several months, still looks like a great IPO pick after all these years. And although we arent excited about Googles return ($2,632) compared to other companies, thats still pretty good.So it pays to be among the earliest investors, but how do you knowwhat to invest in? All these companies initially started as one among many competitors. Some IPOs skyrocket in value only to plummet in the following years. Other IPOs take a long time to get off the ground. We dont know how to pick the winners, but were confident if you bought any of these stocks early on, youre still happy with your return today.Correction March 4th, 2019 A previous version of this article compared an Investment of $100 in BTC vs IPOs. In order to avoid confusion we are now only comparing investments into IPOs.This article originally appeared on How Much.You might also enjoyNew neuroscience reveals 4 rituals that will make you happyStrangers know your social class in the first seven words you sa y, study finds10 lessons from Benjamin Franklins daily schedule that will double your productivityThe worst mistakes you can make in an interview, according to 12 CEOs10 habits of mentally strong people

How to be smarter with money 8 simple secrets

How to be smarter with money 8 simple secretsHow to be smarter with money 8 simple secretsEveryone wants to know what the next great investment is. But thats the wrong question. If you want to make money over the long haul, picking investments isnt the real aufgabe. When studies compare how well investments perform to how well investors perform theres always a gap. Investors alfruchtwein invariably do worse than the investments do.From The Behavior Gap Simple Ways to Stop Doing Dumb Things with MoneyThe studies typically compare investors actual returns in stock funds to the average returns of the funds themselves. Just to be clear, theyre trying to compare the returns investors get to the returns investments get. Is there really a difference? Oh, you bet there is. Typically, the studies find that the returns investors have earned over time are much lower than the returns of the average investment.So whats going on? The problem is ur behavior. We do dumb things like buying high and s elling low or choosing a stock that delivers a solid return - while paying twice that in interest on credit card debt. And if we continue to do dumb things it doesnt matter what the investment is well screw it up.A lot of financial advice is straightforward and simple (earn mora, spend less.) But then again so is most dieting advice (eat less, exercise more) and we just dont do it. Its simple - but leid easy.So who can lead us out of this trap? Carl Richards writes about personal finance for the New York Times and is the bestselling author of The Behavior Gap and The One-Page Financial Plan.He puts it quite simply Financial success is more about behavior than it is about skill.Lets get to it Reminder You canelend predict the futureThere is no perfect investment. Timing is always an issue. People said internet stocks just keep going up - and then 2000 happened. Buying a home was a surefire bet - and then 2008 rolled around.From The Behavior Gap Simple Ways to Stop Doing Dumb Thin gs with MoneyTrying to pick a stocks future growth path cousined on past growth is like trying to guess if a coin will come up heads or tails when you know that the last toss was a heads. The previous toss tells you nothing.Some people will argue But Apple climbed more than 4,000 percent from the end of 2000 to the end of 2010 Sure, but do you think its going to keep doing that forever? Of curse not. So were back to predicting the future. And, sadly, your Magic 8 Ball keeps saying, Reply hazy, try again.This shouldnt paralyze you. Youre going to invest your money somewhere. But you want to base your decisions on sound principles - not assumed outcomes that are always uncertain.(To learn more about the science of a successful life, check out my bestselling book here.)To really improve your finances over the long haul, you need a plan. No, it doesnt have to be some 200-page behemoth you will never ever look at and doesnt require you to analyze every cable and phone bill you received over the past 15 years.In fact, the plan can fit on an index card Ask what does money mean to me?Financial planning seems so overwhelming that our first response is to throw up our arms and beg any expert to just tell me what to do. But that doesnt work.Carl asked top financial managers to advise him as if he was a new client - but wouldnt let them ask him any questions. They just had to just make blind recommendations. And exactly zero of them could responsibly do it.Because financial decisions are often life decisions. And all of our lives - and our life goals - are different.From The Behavior Gap Simple Ways to Stop Doing Dumb Things with MoneyFinancial decisions almost always are life decisions. Before you decide on your financial goals, you need to choose your life goals. When you link financial decisions to life decisions, you encounter a whole different platzset of challenges. Each persons financial situation becomes unique, because their goals are unique. Its no longer ab out abstractions like a secure retirement or a college education- its about your vision of retirement, and your childs education. What brings you happiness may not bring your neighbor happiness- and a canned plan wont work for either one of you.And so the first - and most important - question to ask yourself is, What does money mean to me? (Yeah, I know, you didnt expect financial planning to sound like youre talking to a therapist.)Does money mean security? Opportunity? Freedom? Something else? Once you have that answer keep digging. You want to get a vision of what your real goals are along with an idea of your time horizons, risk tolerance and what kind of changes youre willing to make.Your plan doesnt need to be crystal clear and it can change. But youll need it as a North Star so that you dont go chasing every next big thing you read about in the newspaper or the hot stock Uncle Jack mentions at the holiday dinner table.If you have a spouse or partner youll want to have this discussion together because their North Star might be different than yours.Once you have an idea what money means to you, you want to be more concrete about your goals. Specify three big ones. Do you want to be all set for retirement 30 years from now? Or to put your kids through college in 15? Do you want to buy a house in 5 years? Or travel more in 2?Carl says the process is about realizing where you want to go, where you are now and then narrowing the gap. Because the primary question when evaluating any investment is, Will this help me reach my goals?(To learn more research backed tips on how to save money, click here.)And now that you know whats important, we can talk about behavior. And behavior often comes down to feelings.Feelings can be the most powerful things in our lives. Feelings can make memories that last. But if youre not carefulFeelings can be very expensiveWe buy high and sell low because we feel safe when we follow the pack. We hold on to our employers stock even when its not aligned with our goals because we feel loyal.And we trade stocks unnecessarily because it feels, well fun. Theres a word for that gambling.What can we all agree on about gambling? Its fun, exciting and something you would never recommend anyone use as the basis for their retirement or their kids education.Investing is not entertainment. Base your decisions on goals and principles, not on your feelings about whats going to happen. Dont play the stock market thats how you get played.(To learn the two-word morning ritual that will make you happy all day, click here.)But right now you may not have much cash to even think about investing. So whats a dead-simple way to abflug spending less?Use the 72-hour testObviously, you want to do what every financial advice column since the dawn of time recommends track your spending. Its boring - but as we just learned, boring is good. Spending less is important - but its not easy. How can we make it a little easier?Luckily, Jeff Be zos created a wonderful feature to help you control your spending. Its called your Amazon Shopping Cart. Face it, very few of the things you buy online need to be purchased immediately. From now on, anything you would have bought with one-click goes in your Shopping Cart for a mandatory 72-hour holding pattern.After three days, when the gimme-gimme-gimme emotions have died down, objectively ask if this thing is more important than getting closer to the goals on your one-page financial plan.From The One-Page Financial Plan A Simple Way to Be Smart About Your MoneyWhen I return to the site, I rarely feel as strongly about buying whats in my cart. So I delete those items, and in the process save myself a lot of money and the need to find more space. The nice thing about the 72-Hour Test is that very few things must be bought right now. The extra time provides a cushion were not saying no were simply not giving in to our urge for instant gratification.(To learn 5 secrets from neuroscien ce that will increase your attention span, click here.)So youre spending less. Cool. But how do you actually abflug saving - and without exerting any self-control?Automate good behaviorThe easiest way to not make dumb decisions is to not let yourself actually make the decisions. Most, if not all, online financial sites let you automate transactions.Let your Dr. Jekyll set up transfers to savings, payments of bills, and anything else important so your Mr. Hyde doesnt go on a spending spree.From The One-Page Financial Plan A Simple Way to Be Smart About Your MoneyInstead of forcing yourself to make these decisions again and again, make them automatic so your good intentions can turn into good behavior. You can automate your savings and your 401(k) allocations and make sure theyre automatically rebalanced, and I also suggest automating certain set payments, like mortgages or car loans The point is by making these decisions automatic, the temptation to cheat will decrease.(To learn 3 secrets from neuroscience that will help you quit bad habits without willpower, click here.)Youre spending a little less and painlessly saving more. Now how do you properly evaluate those investments that were purchased long before you read that insanely helpful blog post on personal finance?Use the overnight testYoure now a lot more clear on your financial goals. But you werent before when you purchased the investments youre currently holding. How do you get everything in alignment?From The Behavior Gap Simple Ways to Stop Doing Dumb Things with MoneyAsk yourself what you would do if someone came in and sold all of your investments overnight. The next morning you wake up and youre left with 100 percent cash in your account. Heres the test you can repurchase the same investments at no cost. Would you build the same portfolio? If not, what changes would you make? Why arent you making them now?(To learn the secret to never being frustrated again, click here.)Your current investments a re now aligned with your goals. So how do you start making new, good investments?Know the fundamental rules of investingNumber 1 Pay down debt.Number 2 Are you sure you cant pay down more debt?From The One-Page Financial Plan A Simple Way to Be Smart About Your MoneyIf youre holding on to debt with high interest rates, paying those debts down trumps just about any other financial investment you can make People who understand interest earn it. People who dont pay it.Think about it paying off debt has a guaranteed return. Literally, zero risk. You dont pay interest on what you dont owe. And debt always stands in the way of pursuing those goals you just defined.Number 3 make sure to diversify. By not putting all your eggs in one basket you reduce risk and often increase returns.From The One-Page Financial Plan A Simple Way to Be Smart About Your MoneyThe magic of diversification is that you can take two individual investments, which when viewed in isolation are individually risky, and blend them in a portfolio. Doing so creates an investment thats actually less risky than the individual components and often comes with a greater return. In finance, this is as close as we get to a free lunch.In finance, unsystematic risk is betting on a particular stock, sector or industry. This requires knowing the future. We want to eliminate unsystematic risk. We want to focus on systematic risk. That means betting on the system as a whole.From The One-Page Financial Plan A Simple Way to Be Smart About Your MoneyWhat you want instead is to take on systematic risk - this means youre invested in the concept of capitalism as a whole. Its based on the assumption that, despite the up-and-down nature of the market (and how terrifying the downs are), over long periods of time, it will continue to grow. Therefore, you want to own hundreds of stocks across the market sure, some of the companies you own will fail, but it wont really affect you because you spread your risk across a whole bunch.This means mutual funds are usually better than individual stocks. But whats the problem with mutual funds? Fees. You want to keep costs as low as possible.Tons of studies have tried to tease out what makes one mutual fund better than another. What was the only predictive variable they found that determined which investors made more money?From The One-Page Financial Plan A Simple Way to Be Smart About Your MoneyIt turns out that theres not a single variable that will help you identify how a mutual fund will perform- except for one. Cost. Which really just boils down to simple math the more you pay for your investments, the less money youll end up keeping.Beyond that, always review your one-page financial plan and ask if the investment helps you meet your goals. It does? Thats exciting But we now know not to trust excitement. Sounds too much like fun and fun is dangerous when investing.So have a friend or family member ask you three questions to make sure youre not making a mis takeIf I make this change and I am right, what impact will it have on my life?What impact will it have if Im wrong?Have I been wrong before?If the answers are little, horrendous and frequently you may want to consider a safer investment like, say, Russian roulette.(To see the schedule that very successful people follow every day, click here.)The final piece of advice is something you have always wished someone would tell you is the path to riches Be ignorant and lazyA huge mistake people make is reading too much short-term financial news that leaves them itchy to buy, sell, or otherwise gamble. Say it with me now you cant predict the future. And neither can the experts.But they need to make predictions every day nonetheless. This has the result of helping them keep their jobs and helping you lose money. The press doesnt write stories about people who saved their pennies, paid off their credit cards and made safe, boring investments over thirty years. (Yawn.)So do your homework in ad vance and then ignore the news. Daily updates just make you anxious and anxiety rarely leads to smart money decisions. Only pay attention to what really matters to your goals and what you can control. As Carl likes to say, Focus on your personal economy and stop worrying about the global one.Some people will push back But what about Black Swans If people had paid attention we could have avoided the 2008 crisis Well, theyve done research on the experts who correctly predict extreme shifts. And guess what?From The Behavior Gap Simple Ways to Stop Doing Dumb Things with MoneyThe guys who occasionally nail a very dramatic forecast are actually less reliable than their more middle-of-the-road colleagues. Keohane cites a 2010 study by Oxford economist Jerker Denrell and New York Universitys Christina Fang, who dug through data from the article Survey of Economic Forecasts in The Wall Street Journal. Denrell and Fang concluded that economists who correctly call the most unexpected events h ave worse long-term records than the rest of the pack.So set aside regular time to diligently plan - and then be lazy. At first it may seem terrifying to ignore the news but think of the time youll save not tracking the market, not trading and not listening to Jim Cramer shout.(To learn the 4 secrets to reading body language like an expert, click here.)Okay, weve covered a lot. Lets round it all upSum upThis is how to be smarter with moneyReminder You Cannot Predict The Future Timing the market isnt investing its gambling. And how would you react if I said I planned on funding my retirement through gambling?Ask, What Does Money Mean To Me? Make a simple plan and then make sure your investments serve it.Feelings Can Be Very Expensive Investing is boring. And make sure it stays that way. Dont play the market. Thats how you get played.Use the 72-Hour Test Very few things need to be bought immediately. Let them sit in your shopping cart for 3 days to prevent impulse buys. (The only ex ception is my book, which should be purchased immediately and in bulk.)Automate Good Behavior Until our robot overlords arrive, make sure to take advantage of our robot underlings. The best way to be consistent about good behavior is to automate it.Use The Overnight Test If all your investments got sold, which ones would you actually re-buy? And why doesnt your portfolio look like that now?Know The Fundamental Rules of Investing Pay off debt. Diversify. Keep costs low. Eliminate unsystematic risk.Be Ignorant And Lazy TMI is a bad idea with people youve just met and with investing. If your money is already hard at work, why interrupt it?Simple, but not easy. So plan, automate and be lazy so you can get out of your own way.Its not gambling, but that doesnt mean its not rewarding.Being smart with money is short-term boring, but long-term sexy.Join over 320,000 readers. Get a free weekly update via emailhere.Thisarticlefirst appeared in 2014 onBarking up the Wrong Tree.

SoYour Cover Letter Kind Of Sucks

SoYour Cover Letter Kind Of SucksSoYour Cover Letter Kind Of SucksIf I read 1 mora blasted cover letter that starts off with, I am writing regarding the XYZ position you currently have available.News flash 1 we know you are writing, because this is called a L-E-T-T-E-R. And news flash 2 that opening sentence is 1001.01% B-O-R-I-N-GHeres what I want you to do instead say who you are, what you do, and the value you bring. And you know when youre going to say it? Immediately In the 1st sentenceNow, hold on a second, because before you even write that 1st sentence, I want you to do something super wild and crazy, likeI dont knowhmmm, lets seefind out what your audience wants, and actually give it to them.Whos your audience? The people who wrote the ad. What do they want? They wrote it in the ad.So theres a little exercise you need to do before jumping into the cover letter. It goes a little something like this you know how your computer has Windows in it? Make 1 window display the ad. Ma ke another window right next to it display a blank Word document where youre about to write your letter.Read the ad. While reading, make note in your Word document the important points and keywords from the ad. The important points very likely have to do with what the job entails, as well as what the qualifications are.small point of note EVERY ad says you need excellent written and verbal communication skills SKIP that. Dont write that down.The points youre going to write down will be things like these lets say the ad is for a Vice President, Marketing, and the job description says?Develop absatzwirtschaft plans and programs for each product & tafelgeschirr?Direct strategic and tactical promotional support?Offer information and commentary pertinent to considerations?Maintain relations with partners by organizing community-relations programs?Define company presence at conventions, annual meetings and seminars?Run short- and long-term market forecasts and reports?Influence products by evaluating current market trends and future needs?Lead marketing staff by recruiting, selecting, and orienting employees?Oversee maintenance of brand visual design and direct aesthetics of the company?Progress marketing staff by continuing educational and skill-building opportunitiesYou need to write down 5-7 of those points. Heres what you can write down in your Word doc?Develop marketing plans and programs?Maintain relations with partners by organizing community-relations programs?Define company presence at conventions, annual meetings and seminars?Run short- and long-term market forecasts and reports?Evaluating current market trends and future needs?Lead marketing staff?Oversee maintenance of brand visual design and direct aesthetics of the companyIn the same ad, the qualifications say? 10+ years of experience in marketing focused on B2B offerings? Experience leading a marketing team including hiring and mentoring? Proven ability to drive geschftliches miteinander initiatives? Experience building strategic plans, branding, and creative visualization? Exceptional analytics, leadership, organizational, and problem solving skills? Effective written, oral, and presentation communication skillsYou need to write down? 10+ years of experience in marketing focused on B2B offerings? Experience leading a marketing team including hiring and mentoring? Proven ability to drive business initiatives? Experience building strategic plans, branding, and creative visualizationLets start to put this all together. Instead of that snoozer of an opening line I am writing regarding the XYZ position you currently have available. You write an opener that tells who you are, what you do, and the value you bring. And your opening lines actually give the audience what they specifically said they wanted. Use the language from the ad, but not 100% verbatim. Ill put the parts from the ad in quotes here you will not put them in quotes in your letter.I am a marketing professional with 12 years of experience in B2B marketing, who has a record of success defining innovative marketing plans and programs and recruiting and leading marketing teams.As your letter continues, position your history, specific successes, and hard-core accomplishments as concrete examples of how youve done exactly whats in the ad.The cover letter that tells your audience what they want to hear is the cover letter that gets read